Iran has a history for being hostile and controversial towards cryptocurrencies. The country had banned its banks from ever touching Bitcoin or other forms of digital coins. But it September, officials said that the ban is to be reversed.
Iran’s Supreme Council of Cyberspace has declared cryptocurrency mining to be officially recognized as an industry. This makes mining digital coin a legal business in the country.
Secretary Abolhassan Firouzabadi at the Council said that cryptocurrencies mining like Bitcoin has been accepted as an industry in the government and all related organizations to the mining such as Ministry of Communications and Information Technology, Central Bank, Ministry of Industry, Mining and Trade, Ministry of Energy, as well as Ministry of Economic Affairs and Finance have all agreed to it
Legalizing cryptocurrencies in the country also opens the development of Iran's national cryptocurrency, which IBENA (a Central Bank-affiliated news agency) claims would be a vital tool in trading with Iran’s trade partners.
"We are trying to prepare the grounds to use a domestic digital currency in the country." said Alireza Daliri, a senior official at the Directorate for Scientific and Technological Affairs of the Presidential Office.
This news caused a sudden surge in Bitcoin's market, pushing its price to over $26,000 on a local exchange overnight. Local sentiments have also been positive.
Given by the challenging U.S. trade sanctions placed on Iran, and also influenced by the country’s banking, economic, and financial institutions, cryptocurrency trading and mining can be a solution for Iran. Especially since Iranian Rial currency has been rapidly declining in value.
Economists were nervous that the plunging price would make the country suffer form rapid hyperinflation, mirroring Venezuela's economy.
"This currency would facilitate the transfer of money (to and from) anywhere in the world. Besides, it can help us at the time of sanctions," said Daliri.
The price of Bitcoin in Iran may not be relevant to other places in the world, but it certainly shows that digital coins do have a place in the governments, especially to those that need cryptocurrency as part of its economy.
